Government Entity Rules and Regulation
A. Economic Regulations
Business often adjusts their operations and their prices in an attempt to increase profits. The Philippines is one of the countries involved in the Free Enterprise System. In a free enterprise system businesses are free to produce the goods and services people need and want. But with the free enterprise what a business can and cannot do.
One of the key factors affecting profit is competition. If a business has competitions (other companies producing and selling similar goods or services) it cannot change prices that are much higher than those of its competitors without losing customers. However, it cannot change prices that would result in less income than expenses without taking the survival of the business .Profit is essential for a business t remain in operation and it one of the most important principle of a free enterprise system .one of the factor of establishing rules and regulation as well.
The government often enacts laws to promote safe working conditions and to ensure safe products .for example there are laws established to limit the numbers of hours people can work and to provide certain safety standards in the work place .product safety is another concern .for example if a company develops a new medicine, a government agency requires expensive testing to determine the safety and effectiveness of the medicine before allowing it to be sold to the public. New drug and medicine must undergo extensive testing before the government allows doctors to prescribe them for their patients. Government Regulates business in other way as well. Antitrust law are enacted to help prevent companies from merging or joining together, in order to control the supply and price of a product or service. These laws help maintain competition among businesses. Economic regulation are establish to ensure safety , to promote competition and to protect consumers, business in a free enterprise system are...
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